Syms Corp Reports Fourth Quarter and Year End 2010 Financial Results; Announces Repayment of Short-Term Credit Facility

SECAUCUS, N.J., May 13, 2011 /PRNewswire/ -- Syms Corp (NASDAQ: SYMS) (the "Company"), a leading off-price retailer, announced results today for its fourth quarter and full fiscal year ended February 26, 2011. In addition, the Company announced that it closed on the sale-leaseback of the Company's property located in Rockville, Maryland, and used a portion of the proceeds from the transaction to pay in full the balance of its short-term loan under a credit facility with Bank of America, N.A.

For the fourth quarter (13 week period) ended February 26, 2011, the Company had a net loss of $17.8 million ($1.23 per share) as compared to a net loss of $7.4 million ($0.51 per share) for the quarter ended February 27, 2010.  For the fiscal year (52 week period) ended February 26, 2011, the net loss was $32.9 million ($2.27 per share) as compared to net income of $8.3 million ($0.57 per share) for the fiscal year ended February 27, 2010.  The current and prior year periods include one-time items that affect comparability, including a gain on life insurance proceeds, a bargain purchase gain associated with the acquisition of Filene's Basement and acquisition costs related to that transaction in the prior year, and restructuring-related costs in the current year.  Excluding these one-time items, the Company's adjusted net loss for the quarter ended February 26, 2011 would have been $12.1 million ($0.84 per share), compared to last year's adjusted net loss of $7.3 million ($0.50 per share).  The adjusted net loss after excluding these items for the year ended February 26, 2011 would have been $24.8 million ($1.72 per share), compared to last year's adjusted net loss of $21.2 million ($1.46 per share).

Net sales for the fiscal quarter ended February 26, 2011 were $100.9 million compared to $115.5 million for the fiscal quarter ended February 27, 2010, a decline of $14.6 million, or 13%.  For the year ended February 26, 2011, net sales increased by $67.8 million, or 18%, to $445.1 million, up from $377.3 million last year.  The increase in sales was primarily the result of the acquisition of Filene's Basement in June 2009.  Comparable store sales were flat for the year and decreased 7% in the thirteen week period ended February 26, 2011.

Adjusted net profit and loss excluding items that affect comparability is a non-GAAP measure.  The Company believes the excluded items are not indicative of the recurring performance of the business and that by providing this supplemental disclosure it will facilitate a more meaningful comparison of its operating performance.  A reconciliation of net profit and loss as reported to the adjusted net profit and loss is included as a schedule in this press release.

As of February 26, 2011, the Company and its wholly-owned subsidiary Filene's Basement, LLC collectively owned and operated 47 "off-price" apparel stores located predominantly on the east coast of the United States under the "Syms" name (which, together with co-branded Syms/Filene's Basement stores, are owned and operated by the Company) and the "Filene's Basement" name (which are owned and operated by Filene's Basement, LLC). Each Syms and Filene's Basement store offers a broad range of first quality, in season merchandise bearing nationally recognized designer and brand-name labels.

Forward-Looking Statements

Certain information in this press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to Syms Corp and its subsidiaries that are based on the beliefs of Syms' management, as well as assumptions made by and information currently available to Syms' management. When used in this press release, the words "anticipate", "believe", "estimate", "expect", "intend", "plan" and similar expressions as they relate to Syms Corp and its subsidiaries, identify forward-looking statements. Such statements reflect the current views of Syms Corp with respect to future events, the outcome of which is subject to certain risks, including, among others, general economic and market conditions, decreased consumer demand for Syms' and Filene's Basement's products, possible disruptions in Syms' computer or telephone systems, possible work stoppages or increase in labor costs, effects of competition, the impact of integrating Filene's Basement's business and Syms Corp's existing business, possible disruptions or delays in the opening of new stores or inability to obtain suitable sites for new stores, higher than anticipated store closings or relocation costs, higher interest rates and borrowing costs, unanticipated increases in merchandise or occupancy costs, and other factors which may be outside the control of Syms Corp. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Syms Corp or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph.

For further information, please contact Davia Temin of Temin and Company at 212-588-8788.

SYMS CORP STATEMENTS OF OPERATIONS (in thousands except per-share amounts)
	Thirteen Weeks Ended				Fifty-Two Weeks Ended
	2/26/2011		2/27/2010		2/26/2011		2/27/2010
Net Sales	$        100,876		$       115,457		$       445,133		$        377,309
Gross Profit	31,581		38,000		173,792		145,102
Operating Expenses	59,743		54,512		224,172		149,944
Net Income (Loss)	$        (17,803)		$          (7,414)		$        (32,857)		$            8,308
Net Income (Loss) per share (basic & diluted)	$            (1.23)		$            (0.51)		$            (2.27)		$              0.57
Weighted average shares outstanding (basic & diluted)	14,448		14,598		14,456		14,593

SYMS CORP CONSOLIDATED BALANCE SHEETS (in thousands)
	2/26/2011		2/27/2010
ASSETS
Current Assets:
Cash	$                    2,298		$                   2,049
Receivables	2,619		3,195
Merchandise inventories	76,595		82,234
Other current assets	18,425		27,949
Total current assets	99,937		115,427
Property & equipment	117,200		118,539
Other Assets	53,637		35,113
Total Assets	$                270,774		$               269,079
LIABILITIES & SHAREHOLDERS EQUITY
Current Liabilities:
Accounts payable	$                  41,701		$                 47,356
Accrued expenses	21,114		9,945
Other current liabilities	5,559		5,328
Total current liabilities	68,374		62,629
Long term debt	30,192		8,402
Other long term liabilities	11,229		3,016
Shareholders' Equity	160,979		195,032
Total Liabilities and Shareholders' Equity	$                270,774		$               269,079

SYMS CORP RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP (in thousands except per-share amounts)
	Thirteen Weeks Ended				Fifty-Two Weeks Ended
	2/26/2011		2/27/2010		2/26/2011		2/27/2010
GAAP Net Income (Loss)	$        (17,803)		$          (7,414)		$        (32,857)		$            8,308
Transactions affecting comparability:
Gain on life insurance proceeds	-		-		-		(24,764)
Bargain purchase gain on Filene's acquisition	-		-		-		(9,714)
Acquisition costs related to Filene's acquisition	-		95		-		4,857
Asset impairment charge	2,534		80		4,255		80
Restructuring charge	7,173		-		9,306		-
Total impact of transactions affecting comparability	9,707		175		13,561		(29,541)
Income tax effect	3,970		72		5,546		-
Net impact of transactions affecting comparability	5,737		103		8,015		(29,541)
Adjusted Net (Loss)	$        (12,066)		$          (7,311)		$        (24,842)		$        (21,233)
GAAP Net Income (Loss) per share (basic & diluted)	$            (1.23)		$            (0.51)		$            (2.27)		$              0.57
Adjusted Net (Loss) per share (basic & diluted)	$            (0.84)		$            (0.50)		$            (1.72)		$            (1.46)

SOURCE Syms Corp

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